TRADE WAR TAKES BITE ON APPLE
The escalation of the U.S.-China trade war has taken its toll on Apple as the iPhone maker’s profits are seen as particularly vulnerable given its reliance on China for production and sales. The shares closed Friday at US$197.18, down 1.4 per cent on the day. Apple has shed about $67 billion of market value since last Friday, a slide that takes it even further away from the US$1-trillion valuation it appeared close to reclaiming earlier this month. The trade war that culminated this week has been particularly troubling for Apple investors. Not only are its supply chain and production closely linked to China, the Asian nation also accounted for nearly 20 per cent of its 2018 revenue, according to data compiled by Bloomberg. Morgan Stanley on Thursday estimated that in a worst-case trade scenario, Apple could see its earnings drop by nearly a quarter, or US$3 per share.